 Foreign corporations are welcomed to invest in all sectors except 4 sectors:

1. Weapons related to defence

2. Forest plantation & extraction
3. Nuclear energy production
4. Mining & security printing

 TAX HOLIDAY – basically a reduction of tax is granted by the government for 5 or 7

years which is determined by the location of the corporation.
 INCOME TAX EXEMPTION - either a reduction or complete elimination of tax
payable by an corporation. Tax exemption is authorized in situations of royalty
payments, foreign technicians (3 years), power Generation Company (15years) etc.
 ACCELERATED DEPRECIATION ALLOWANCE– this is a way in which
corporations can make smaller income tax payments initially but will have to pay more
in the future.
 CONCESSIONARY DUTY on imports of Capital Equipment- foreign companies have
to pay 5% ad valorem tax for importing capital equipment. Also they won’t need to pay
VAT for importing the capital equipment. 100 % Export oriented industries does not
have to pay any import duty.
 OWNERSHIP - Foreign corporations can have full ownership.
 REMITTANCE- foreign investors can transfer all their
1. Earnings & profits,
2. dividends,
3. capital gains from sale proceeds & portfolio investments,
4. technical fees & royalties
5. savings & retirement benefits

to their home county or headquarters without any prior approval of Bangladesh bank.
Remittance can also be in the form of principal or interest payment of a loan. However,
foreign employees can only remit half of their salary but can fully remit their savings to home
country.
  FOREIGN EXCHANGE- Bangladesh follows a managed float exchange rate system.
However, taka is freely convertible and foreign investors can conduct trade and
investment through local banks which are authorised to buy and sell foreign currencies.
 Foreign investors can take working capital loans from local banks. They can also take
short term foreign currency loans from other foreign companies located in Bangladesh.
 LEGAL PROTECTION will be provided by the government in accordance to ‘The
Foreign Private Investment Act 1980’ and also through international & bilateral
agreements.

By looking at the present government regulations we can say that the regulations are liberal
and friendly for foreign investment.

 Minimal government intervention in currency transfer and convertibility restrictions,

allows more strategic freedom and full managerial autonomy for MICRON. Since
Bangladesh has low corporation tax and also tax rate has decreased by 9.09%
MICRON can earn a huge return from Bangladesh which it can fully transfer to its
headquarters and home country without the approval of Bangladesh bank.
 Most importantly, as Bangladesh allows 100% foreign equity MICRON will not have
to cooperate with a Bangladeshi company or individual to be its partner. Thus they
won’t have to go through additional documentation work of setting up and also there
won’t be any loss of control.
 MICRON will receive the same treatment as a domestic firm thus it can take
advantage of fiscal incentives such as- tax holidays & tax exemption.
 MICRON can also take advantage of financial incentive such as - receiving
favourable financing from both local and foreign banks operating in Bangladesh.
 As taka is easily convertible capital flows can take place smoothly between countries
with which MICRON has trade relations.
 Moreover, as taka is weak in terms of us dollars it will be cheaper for micron to
purchase assets.
 Foreign experts working for MICRON will receive ‘Multiple Entry Visa’ for 3 years.
 MICRON will receive Legal protection on patents, copyrights and will also receive
special preference of the government as it is a High-tec capital-intensive industry.
Therefore, MICRON will invest in Bangladesh as there is quite a lot of incentives and
facilities provided by the government for foreign direct investment.

https://www.bb.org.bd/investfacility/invesfac.php
http://www.dhakachamber.com/home/Trade_Opportunities_Foreign_Investment